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Setting up a business in Thailand offers attractive opportunities for both local and foreign investors. Thailand has a well-established legal framework for company registration, and in recent years the process has become more streamlined through online registration systems and clearer regulatory enforcement.
This guide outlines the key legal and practical steps involved in setting up a business in Thailand, from choosing the appropriate business structure to complying with tax, employment, and licensing requirements.
Step 1: Choose the Appropriate Business Structure
The first step in setting up a business in Thailand is selecting the legal structure that best suits your objectives.
The most common options include:
- Private Limited Company – the preferred structure for most businesses
- Branch Office of a foreign company
- Representative Office
- Regional Office
- BOI-Promoted Company
- US-Thai Treaty of Amity Company (for eligible U.S. nationals)
For most entrepreneurs, a Thai private limited company provides flexibility, credibility, and scalability.
Step 2: Understand Foreign Ownership Restrictions
Foreign investors must consider the Foreign Business Act (FBA), which restricts foreign ownership in certain business activities. In general:
- Some businesses are fully restricted
- Some require a Foreign Business License (FBL)
- Others allow foreign ownership with conditions
Legal alternatives may include:
- Applying for BOI promotion
- Structuring under the US-Thai Treaty of Amity
- Operating in non-restricted business categories
Improper use of nominee shareholders is strictly prohibited and subject to enforcement.
Step 3: Company Name Reservation and Registration
Company incorporation is handled by the Department of Business Development (DBD) and is now largely processed through its online registration system.
The registration process typically includes:
- Company name reservation
- Filing of incorporation documents
- Registration of directors and shareholders
- Submission of the registered office address
Step 4: Registered Capital and Shareholding Requirements
A private limited company must declare registered capital, which depends on the nature of the business and whether foreign employees are involved.
Key considerations include:
- Minimum capital for standard Thai companies
- Higher capital requirements for foreign directors or employees
- Capital-to-work-permit ratios
- Shareholding structure compliance
Capital must be genuine and properly documented.
Step 5: Obtain Business Licenses and Permits
Certain businesses require specific licenses or regulatory approvals before commencing operations, such as:
- Service businesses
- Food and beverage operations
- Educational institutions
- Financial and professional services
Failure to obtain the required permits may result in fines, suspension, or closure of the business.
Step 6: Tax Registration and Accounting Compliance
After incorporation, companies must register with the Thai Revenue Department and comply with ongoing tax obligations.
Key requirements include:
- Corporate Income Tax registration
- VAT registration once revenue reaches THB 1.8 million per year
- Monthly withholding tax filings
- VAT filings (if applicable)
- Annual financial statements and statutory audit
Proper bookkeeping and timely filings are essential to avoid penalties.
Step 7: Employment and Social Security Registration
Businesses employing staff in Thailand must:
- Register with the Social Security Office
- Make monthly employer and employee contributions
- Comply with Thai labor laws
Registration must be completed within 30 days of hiring employees.
Step 8: Visas and Work Permits for Foreigners
Company registration alone does not authorize foreigners to work in Thailand. Foreign directors and employees must obtain:
- A Non-Immigrant B Visa
- A Work Permit
Approval depends on factors such as:
- Registered capital
- Number of Thai employees
- Business activity
- Compliance history
Operating without a valid work permit is a serious offense under Thai law.
Ongoing Compliance and Corporate Maintenance
Once established, companies must maintain ongoing compliance, including:
- Holding annual shareholder meetings
- Filing required documents with the Department of Business Development (DBD)
- Submitting monthly tax returns and annual corporate income tax filings
- Preparing and submitting the company’s balance sheet and financial statements for statutory audit purposes
- Renewing licenses and permits as required
- Ensuring immigration and work permit compliance for foreign employees
Failure to comply may result in fines, blacklisting, or forced dissolution.
Final Thoughts
Setting up a business in Thailand is a structured legal process that requires careful planning and compliance at every stage. While the registration process has become more efficient through digital systems, foreign ownership rules, tax compliance, and employment regulations remain strictly enforced.
Professional legal guidance can help ensure that your business is properly structured, compliant, and positioned for long-term success in Thailand.
Planning on setting up a business in Thailand?
Magna Carta Law Firm assists local and foreign clients with company registration, licensing, visas, work permits, and ongoing compliance.
Contact our legal team today for professional assistance.
Legal Disclaimer
This article is provided for general information purposes only and does not constitute legal advice. Laws and regulations in Thailand are subject to change. Professional legal advice should be obtained before taking any action.
This content has been updated, reviewed and verified on January 2026 by:
Jira Chaisiri (Attorney-At-Law and Adviser)
Licensed Attorney-At-Law, The Lawyers Council of Thailand
He has over 40 years of legal practice in financial institutions and constitutional public agencies.
